OVERVIEW OF THE UNION BUDGET 2024-25
Abhishek Khare
Advocate on Record Supreme Court of India| Photographer | Public Speaker | Story Teller
The Union Budget for 2024-25, presented by Finance Minister Nirmala Sitharaman, is a pivotal document that outlines the government’s financial strategy for the upcoming fiscal year. It is in accordance with Article 112 of the Indian Constitution which mandates the government to put forth the Annual Financial Statement in the Parliament. This year’s budget is particularly significant as it aims to set the course for a “Viksit Bharat” (Developed India) by focusing on growth, employment, and social equity.
Overview of the Union Budget 2024-25
?Key Objectives
The Union Budget 2024-25 is designed to achieve several key objectives:
- Stimulate economic growth post-pandemic
- Enhance social welfare and equity
- Promote sustainable development
- Foster innovation and entrepreneurship
?Fiscal Parameters
- Total Budget: ?45 lakh crore
- Fiscal Deficit Target: 5.5% of GDP
- Revenue Receipts: ?26 lakh crore
- Capital Expenditure: ?7.5 lakh crore
?Major Allocations
?1. Infrastructure Development
The government has prioritized infrastructure development as a key driver of economic growth.
- Total Allocation: ?11.11 lakh crore (3.4% of GDP)
?Key Projects:
? - Road Transport and Highways: ?2.65 lakh crore
? - Railways: ?1.2 lakh crore
? - Urban Development: ?10 lakh crore for PM Awas Yojana Urban 2.0, aimed at addressing housing needs for 1 crore urban poor and middle-class families.
?2. Healthcare
The healthcare sector receives a significant boost to improve access and quality.
- Total Allocation: ?89,287 crore
Key Initiatives:
? - Expansion of the Ayushman Bharat scheme
? - Increased funding for healthcare infrastructure in rural areas
?3. Education
Investment in education is crucial for human capital development.
- Total Allocation: ?1,25,638 crore
Key Initiatives:
? - Upgrading 1,000 Industrial Training Institutes (ITIs)
? - Enhanced funding for digital education initiatives
?4. Agriculture and Rural Development
The budget outlines measures to support farmers and enhance productivity.
- Total Allocation: ?1,51,851 crore
Key Initiatives:
? - PM-KISAN scheme allocation increased to ?75,000 crore
? - Introduction of 109 new high-yielding and climate-resilient crop varieties
?5. Employment and Skilling
The government aims to create jobs and enhance employability through various initiatives.
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- Total Allocation for Employment Programs: ?60,000 crore
Key Initiatives:
? - Reimbursement of EPFO contributions for new hires up to ?3,000 per month for 2 years, expected to generate 50 lakh jobs.
? - Skill development for 20 lakh youth over five years.
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?6. Social Welfare
Significant allocations are made for social welfare programs.
- Total Allocation: ?3 lakh crore for schemes benefiting women and girls
Key Initiatives:
? - Financial support for working women hostels
? - Direct cash transfers to support low-income families
?7. MSMEs and Startups
Support for micro, small, and medium enterprises (MSMEs) is crucial for economic growth.
- Total Allocation: ?47,559 crore
Key Initiatives:
? - Enhanced Mudra Loans limit to ?20 lakh
? - Credit Guarantee Scheme for MSMEs
?8. Defence
National security remains a priority with increased defence spending.
- Total Allocation: ?4,54,773 crore
Key Initiatives:
? - Focus on indigenous defence production and procurement
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?9. Tax Reforms
?Changes in Tax Structure
The budget introduces several tax reforms aimed at simplifying the tax regime and providing relief to taxpayers.
- Standard Deduction: Increased from ?50,000 to ?75,000 for salaried employees.
- Revised Income Tax Slabs:
? - 5% on income between ?3-7 lakhs
? - 10% on income between ?7-10 lakhs
? - 15% on income between ?10-12 lakhs
? - 20% on income between ?12-15 lakhs
? - 30% on income above ?15 lakhs
- Long-Term Capital Gains Tax: Reduced from 10% to 7.5% for equities and from 20% to 15% for real estate investments.
Impact of Tax Reforms
These tax reforms are expected to increase disposable income for middle-class taxpayers, boost consumer spending, and stimulate investment in various sectors, including real estate and equities.
1.????? Economic Growth
The budget is designed to stimulate economic growth through increased public spending on infrastructure and social welfare programs. The focus on job creation and support for MSMEs is expected to enhance employment opportunities and boost domestic consumption.
2.????? Social Equity
By prioritizing allocations for women, children, and marginalized communities, the budget aims to reduce inequalities and improve the overall quality of life for disadvantaged groups.
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3.????? Environmental Sustainability
Investments in renewable energy and sustainable agricultural practices reflect the government’s commitment to environmental sustainability. The introduction of natural farming practices and support for climate-resilient crops are key initiatives in this regard.
4.????? Innovation and Entrepreneurship
The budget’s focus on startups and innovation, along with tax incentives for R&D, is expected to foster a culture of entrepreneurship and drive technological advancements in various sectors.
5.????? Infrastructure Development
The significant allocations for infrastructure projects are anticipated to improve connectivity, reduce logistics costs, and enhance overall economic productivity. This is crucial for attracting foreign investment and boosting the manufacturing sector.
?Conclusion
The Union Budget 2024-25 is a comprehensive document that outlines the government’s strategies for economic growth, social welfare, and sustainable development. With specific allocations across various sectors and significant tax reforms, the budget aims to create a robust foundation for a “Viksit Bharat.” The expected impacts of these measures are far-reaching, with the potential to enhance the quality of life for millions of citizens while driving economic growth and innovation.
As the government moves forward with the implementation of these initiatives, the effectiveness of the budget will be closely monitored, and its success will depend on efficient execution and stakeholder engagement.
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